Arizona Real Estate License Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

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Question: 1 / 1505

If a property is assessed at $200,000 and the tax rate is 1.2%, how much will the annual property tax be?

$1,200

$2,400

To calculate the annual property tax based on the assessed value of a property and the tax rate, you use the formula:

Annual Property Tax = Assessed Value × Tax Rate

In this scenario, the assessed value is $200,000 and the tax rate is 1.2%. First, convert the percentage into a decimal for calculation purposes:

1.2% = 0.012

Now, substitute the values into the formula:

Annual Property Tax = $200,000 × 0.012

Multiply these values together:

Annual Property Tax = $2,400

This result indicates that the property owner will owe $2,400 in annual property taxes. Understanding this calculation is crucial for anyone involved in real estate, as property taxes can significantly impact the cost of owning a home.

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$2,600

$3,000

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